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Energy Tomorrow Blog

Oil Demand Back, But Supply Remains Key Question

monthly-stats-report  supply  oil demand 

Dean Foreman

Dean Foreman
Posted June 17, 2021

The expectations and real prospects for global and U.S. economic recovery – and energy markets along with them – have accelerated and appear bright. That’s the overarching point in API’s quarterly Industry Outlook for Q2 2021 and Monthly Statistical Report (MSR), echoing what we have said since the third quarter of last year (see here, here and here). 

 

Yet, while API’s primary data for May 2021 show the recoveries in U.S. economic growth and petroleum demand have continued to go hand-in-hand, potential record global oil demand growth this year and the next, per the U.S. Energy Information Administration (EIA), could be overshadowed by the lowest industry-wide real capital expenditures on record for any quarter, by API estimates.

 

Demand up and capital investment down by record amounts is a concerning combination.

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American Energy and the Biden-Putin Summit

russia  president  us energy security  oil and natural gas production  infrastructure 

Frank Macchiarola

Frank Macchiarola
Posted June 16, 2021

Here are three things to consider as President Biden and Russian President Vladimir Putin have their first in-person meeting today in Geneva, Switzerland: Energy is at the heart of Russia's influence and power; new U.S. policies put American energy leadership at risk; and U.S. oil and natural gas should be strengthened, not weakened. ...

There is no question the U.S. relationship with Russia is complicated and will be difficult for years to come. The last thing the U.S. needs is to try to deal with Russia while it is at the same time actively weakening its own energy position. It is an unforced error, an opening that cannot be handed over to formidable adversaries such as Mr. Putin.

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Summer Driving Season – Questions and Answers

gasoline prices  us energy security  oil production  consumers 

Mark Green

Mark Green
Posted May 27, 2021

As Americans flock to the roads this Memorial Day weekend, let’s consider the key factors that impact fuel costs, what it means for U.S. consumers and the best paths to ensure affordable, reliable energy going forward. Four questions and answers: Where are fuel prices today, what's driving fuel prices higher, what can be done to help U.S. consumers, and is the U.S. on the right energy policy course?

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Sommers: Industry Providing Leadership on America’s Key Challenges

Bakken  Environment  oil and natural gas production  climate 

Mark Green

Mark Green
Posted May 12, 2021

During a period of transition and change in our country, the natural gas and oil industry remains a foundation for progress, supplying the energy to run a modern economy – and doing so in ways that protect the environment and reduce emissions.

API President and CEO Mike Sommers emphasized those and related points in a speech to some of the nation’s leading energy producers at the Williston Basin Petroleum Conference in Bismarck, North Dakota.

Sommers described the natural gas and oil industry as one that is focused on producing for the American people as well as one that’s developing technologies and innovating to address the risks of climate change. Sommers said the most important environmental movement in the world is the U.S. natural gas and oil industry.

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IOSC 2021 – Working Together for Safety, Success, Sustainability

oil spill prevention and response  offshore safety 

Mark Green

Mark Green
Posted May 11, 2021

Every three years the International Oil Spill Conference (IOSC) brings together professionals from the private sector, government and non-governmental response community to discuss the science and advanced technologies of preventing incidences, responding in the rare event of a spill and restoring affected areas. IOSC 2021 is occurring virtually this week, again focused on four pillar themes: prevent, prepare, respond, restore. Below, conference remarks by API President and CEO Mike Sommers.

Online or otherwise, this particular gathering is more than just a typical industry event that pops up on our calendars every few years. Instead, this conference provides a special and unique opportunity for our industry to meet with fellow collaborators in government and non-governmental organizations alike.

What brings us together is a common purpose: preventing oil spills and “getting to zero.” To accomplish that, API is proud to help convene an event dedicated to exchanging ideas and sharing lessons learned from around the world as we collectively work toward a safer, cleaner, better future.

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Infrastructure Pivotal for Vital U.S.-Canada Energy Relationship

canada  heavy oil  refineries  pipelines  keystone xl 

Mark Green

Mark Green
Posted May 5, 2021

The United States’ energy relationship with Canada is vital to our economy (as well as Canada’s) and energy security – which makes the administration’s Day 1 cancellation of the Keystone XL pipeline and its omission of pipelines in its new infrastructure initiative look short-sighted.

A new U.S. Energy Information Administration (EIA) brief on U.S. crude oil imports underscores the importance of imported Canadian crude oil – in reducing U.S. reliance on imports from other suppliers and in filling the needs of U.S. refineries that are configured to process heavier crudes, including those from Western Canada.

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Poll: U.S. Voters Recognize Future Role of Natural Gas and Oil

oil and natural gas  poll  us energy security  climate  economic growth 

Mark Green

Mark Green
Posted April 21, 2021

Soon after the 2020 election we noted that results showed U.S. voters are mostly moderate and practical and want sensible solutions to key issues facing the nation, which Democratic pollster Mark Penn wrote is driven by common sense over ideology. Americans’ views on energy certainly fit that construct.

New polling by Morning Consult on behalf of API underscores the point and provides important context for Washington policymakers as they debate the twin issues of energy and climate. 

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API's First Agreement With African Partner Extends Safety, Protection Programs to Continent

api standards program  Environment and Safety  oil and natural gas production 

John Siciliano

John D. Siciliano
Posted April 5, 2021

API took an important step to extending its safety and environmental protection programs to the continent of Africa, signing a new collaborative agreement with the business group African Energy Chamber (AEC), to expand use of API world-class standards, certifications and training programs.

The memorandum of understanding (MOU) with the AEC – API’s first agreement with an African partner – is the latest in a series of similar agreements in the past year between API and organizations in nearly every region of the world. Such agreements arise from the global recognition API standards have earned for enhancing safety, efficiency and environmental protection across the natural gas and oil industry.

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API Reports: Economy, Petroleum Demand Have Gained Momentum

monthly-stats-report  oil demand  economic recovery 

Dean Foreman

Dean Foreman
Posted March 18, 2021

API’s latest industry outlook affirms the extent of recoveries in the U.S. and global economies, as well as rising demand for oil and natural gas.

For the past two quarters, API’s data and analysis have indicated these comebacks were underway, and this is visible in the March Monthly Statistical Report (MSR), based on February data, and API’s quarterly Industry Outlook.

The recoveries come on the tailwind provided by nearly $20 trillion of economic stimulus around the world. We could be poised for the largest two-year oil demand increase (9.2 million barrels per day, mb/d) on record since 1950 and new record highs of demand (102.4 mb/d) by the fourth quarter of 2022.

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We Can't Take Our Energy Security for Granted

us energy security  saudi arabia  domestic oil production  consumers 

Dean Foreman

Dean Foreman
Posted March 17, 2021

One of the great benefits of increased U.S. oil production over the past decade and a half is strengthened U.S. energy security – decreased reliance on foreign oil suppliers and insulation for American consumers against sudden price increases due to geopolitical events, such as the recent attacks on Persian Gulf oil facilities.

Years ago, an episode like that could’ve caused serious alarm in the United States and globally. Yet, the apparent lack of significant or enduring oil price movement following last weekend’s attack shows the tremendous influence U.S. oil production has had on global markets. The same was true after missile attacks on Saudi facilities in 2019 (see here), which substantially reduced Saudi Arabia’s oil exports for a short period. Both events and their aftermath indicate that U.S. domestic production has largely mitigated the price volatility historically associated with serious geopolitical events.

Still, some cautions are in order. First, U.S. energy security can’t be assumed. It takes long-range planning and investments, safe access to domestic resources, the ability to expand pipeline and export facility infrastructure, and a policy-level approach that anticipates unforeseen events that could affect global energy supply and have dire impacts on U.S. security, economic growth, and consumers.

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